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HomeNewsHireRight Reports Fourth Quarter and Full-Year 2023 Results

HireRight Reports Fourth Quarter and Full-Year 2023 Results

– Margin Expansion Continues –

– Enters Into an Agreement to Take Company Private –

HireRight Holdings Corporation , a leading provider of background screening services, today announced financial results for its fourth quarter and year ended December 31, 2023.

Fourth Quarter 2023 Highlights:

  • Revenues of $166.0 million, compared to prior year period revenues of $175.4 million
  • Net loss attributable to HireRight of $4.5 million, compared to prior year period net income of $15.3 million
  • Adjusted EBITDA of $42.5 million, compared to prior year period Adjusted EBITDA of $38.9 million
  • Diluted loss per share attributable to HireRight of $0.07, compared to prior year period diluted earnings per share of $0.19
  • Adjusted diluted earnings per share of $0.23, compared to prior year period adjusted diluted earnings of $0.22 per share

Full-Year 2023 Highlights:

  • Revenues of $721.9 million, compared to prior year period revenues of $806.7 million
  • Net loss attributable to HireRight of $11.6 million, compared to prior year period net income of $144.6 million
  • Adjusted EBITDA of $180.4 million, compared to prior year period Adjusted EBITDA of $188.3 million
  • Diluted loss per share attributable to HireRight of $0.16, compared to prior year period diluted earnings per share of $1.82
  • Adjusted diluted earnings per share of $1.06, compared to prior year period adjusted diluted earnings per share of $1.27

“We’re pleased with our performance during the quarter and throughout the year as we continued to deliver on our margin expansion initiatives,” said HireRight President and CEO Guy Abramo. “We remain the only provider in the industry that can deliver a global solution through a unified platform, evidenced by our continued success winning new global programs with our customers. Regardless of our future ownership structure, we’re optimistic regarding HireRight’s ability to capitalize on evolving industry dynamics, including the changing competitive landscape, to expand market share in the years ahead.”

Liquidity and Capital Resources

The Company had $282.2 million of capital available at December 31, 2023, consisting of $123.4 million of cash and $158.7 million of available borrowing capacity under its revolving credit facility. Through November 17, 2023, the Company had repurchased 12.8 million shares of common stock for approximately $136.5 million under the share repurchase programs announced on November 14, 2022, June 22, 2023, and September 12, 2023 before suspending the program as a result of entry into an agreement to take the Company private.

Cash provided by operating activities was $90.2 million for the twelve months ended December 31, 2023, compared to $107.7 million for the same period in 2022.